An impending federal $50,000 annual borrowing cap for graduate students is reshaping U.S. law school finances and student funding plans. LSAC data show many ABA‑accredited law programs charge tuition above the cap; experts expect more students to rely on private loans if institutional aid doesn’t fill the gap. Some law schools are already responding: Santa Clara Law announced guaranteed $16,000 scholarships to bring tuition below the new limit. The change raises oversight and consumer‑protection questions for regulators and will pressure financial-aid offices and trustees to redesign scholarship strategies.